9 Signs You're Ready for a Financial Advisor

Hey everyone, welcome to We're Talking Money. I'm Phil Clark, wealth advisor here at OmniStar Financial Group. I'm about to give you nine signs that you might need a wealth advisor. You don't want to miss this show, so stay tuned. We'll be right back.

Okay, sign number one: retirement is approaching. This is happening for a lot of people, and when that occurs you don't necessarily think about distribution. But distribution is different from accumulation. In accumulation, all one has to do is think about saving and having the discipline to invest, and things accumulate. When it comes to retirement, now it's distribution planning that becomes so important.

If you make mistakes going into the retirement phase or the distribution phase of your life, it can make a huge difference in your outcome. You've got a lot of complex things that have to be considered. Social Security, when do you take it? 401K distributions, rollovers, IRAs, Roth IRAs. There is so much to think about. You got to make good decisions so that your retirement stays on track.

Sign number two: your investments are scattered among multiple advisors or has custodians. So this old advice, and it's been around forever, don't have all your eggs in one basket. And it's largely the reason for so many investors having their investments scattered among multiple locations or advisors. And on the surface that makes perfect sense. You feel like maybe you don't have as much risk if you do it that way, but on closer examination you could be costing yourself a bundle.

First, investments, they're owned by you, they're not owned by the advisor. So if your advisor suddenly leaves or retires, your custodian will help you find another advisor, and guess what, your money continues to be invested the way it was when the advisor left. So you're not losing anything. You're simply going to make a change of advisors if that happens to be the case. Just remember, with this scattered approach it's nearly impossible to coordinate your financial house with your goals and objectives.

Sign number three: you have children. Now, I know that's sounds simple, and you might be saying, well, of course I have kids, but that doesn't mean I need a wealth advisor. Maybe, maybe not. When you have children, there are big expenses coming your way, whether it's college planning, whether it's inheritance. Having a wealth advisor, someone on your team to help you make good decisions, can be invaluable.

Number four: you are inheriting a lot of money or you just received a windfall. Have you ever noticed how lottery winners, they declare bankruptcy not too many years after winning? It can be so difficult to manage sudden increases in wealth when you don't have a plan or you're not prepared. In fact, preparation is the key to anyone's success. And having a wealth advisor when it comes to inheritances or windfalls, they can help you make the best decisions to maximize your newfound wealth.

Sign number five: you already have an advisor. So financial advisors, wealth advisors, they're not equal except for the title. Depending on how you chose your advisor, it might be time for a second opinion. Now, that's not an insult to the current advisor. Rather, it's an opportunity for you to know if there are more possibilities to improving your plan. It doesn't mean you're going to get rid of your current advisor, but it does mean that you're going to be given the confidence to know what you're doing with that advisor is right and you don't need to change a thing. After all, it's your money. You deserve to know.

Sign number six that you may need a wealth advisor: you're divorcing or remarrying. So divorce rarely happens without a lot of emotional ups and downs. Untangling years and years of building a life together, it can be traumatic. Will you have enough for your retirement? Does it throw you off track in any way? Are your beneficiary designations up to date? Very important questions to answer.

Remarrying, on the other hand, a more joyful time. You're ready for this new stage of life, and it's then that so many people forget that a lot of planning needs to go into this part of your life as well. So is your estate plan up to date? Do you have children from a previous marriage? Very important to consider those things.

Sign number seven that you might need a wealth advisor: you want to build wealth. Well, who doesn't? I'm talking to maybe more of the younger part of the crowd at this point. It takes a long time to build wealth. Decisions today will absolutely affect the outcomes tomorrow. You want to build wealth, you want to start now, and you want an advisor who can help you make good decisions to get you where you're trying to go.

Sign number eight: you're buying or selling a home. Major financial decisions and transactions, they happen throughout our lives, and they can have remarkable outcomes, unintended consequences. How you deploy your financial resources should be considered long before you think about buying or even selling a home. Working with a seasoned advisor, you can get good advice on how much money to put into a property, how much debt's appropriate for you, what will you do with the proceeds when you sell a property. All of these things matter, and they'll absolutely affect your long-range outcome.

Sign number nine: you're starting or selling a business. Starting a business is one of the most liberating things that we can do. In fact, some say that it's the greatest freedom in America. But with a business comes a lot of risk. In fact, a lot of businesses fail because they didn't plan properly. A good advisor can help you decide what kind of planning is necessary long before you take that leap of faith and long before you take on too much risk.

On the other hand, selling a business can be one of the most significant financial events in your life. Many things have to be considered here. Taxes: will you pay a lot of tax or a little tax? Income changes: will you need that earned income any longer? Will you use the proceeds towards retirement? Will you use them for other purchases? Will you buy another business? All of these things have to be considered, so make sure you're getting the right advice so you can make the right decision.

As with most things, there's advantages and disadvantages to working with a wealth advisor. The advantages include things like having an expert in your corner, saving you time, helping you avoid bad decisions, really keeping the emotion out of the equation. All of those are very, very important. There is a disadvantage: wealth advisors are not free. They bring a lot of value, and as you know, things with value have a cost. But here's the bottom line: if your finances are becoming more complex and you don't have a definitive plan, it might be time to consider retaining an advisor.

Whatever your situation, we hope that you found value in the show. If you did, give us a thumbs up, subscribe to our channel, check us out on our other social media platforms. We look forward to bringing you more of these shows, and we appreciate all of your support. Until next time, take care.